Conclusion of a Joint Venture Agreement on the Establishment of a Company to Enter the District Cooling Business in the Kingdom of Saudi Arabia
Jan. 23, 2023
Marubeni Corporation (hereinafter, “Marubeni”), together with Ajlan & Bros for Trading (hereinafter, “Ajlan & Bros Holding Group”) and United District Energy International LLC (hereinafter, “UDEI”), intend to enter into the district cooling business in the Kingdom of Saudi Arabia and have entered into a joint venture agreement (hereinafter referred to as the "Agreement") on January 19, 2023.
District cooling is a plant system that supplies chilled water produced by a central plant to multiple buildings through pipelines. By consolidating the cooling facilities and increasing their capacity, it is possible to improve the efficiency of energy use and achieve better usage of floor area compared to having such facilities in individual buildings. This system contributes significantly to decarbonization by optimizing the operation of the cooling facilities and by taking advantage of economies of scale.
In the Kingdom of Saudi Arabia, the demand for district cooling is expected to expand due to factors such as continuous population growth and urbanization, vigorous real estate development, and increased motivation for energy conservation. The three companies aim to meet local demand by combining Marubeni's know-how in infrastructure business development and operation in the Kingdom of Saudi Arabia; the know-how of UDEI, which has extensive experience in district cooling; and the local network of the Ajlan & Bros Holding Group, which is involved in a wide range of businesses in the Kingdom of Saudi Arabia.
Marubeni formulated its long-term vision for climate change in March 2021 and has positioned a green strategy as one of its basic policies for enhancing corporate value in its mid-term management strategy GC2024. Through this project, Marubeni will expand its community-based utility service business, accelerate the process of decarbonization, and contribute to the sustainable economic development of the Kingdom of Saudi Arabia.
|Ajlan & Bros Holding Group
|Riyadh, Kingdom of Saudi Arabia
|Ajlan Mohamed Al Ajlan
|Year of establishment:
|Energy, water, power, mining, real estate, and infrastructure business
|Yasser Salah Al-jaidah
|Year of establishment:
|District cooling business